Is the bull market for real?

The stock market is on a roll. The Dow Jones industrial average, which approached 14,000 Monday, is one good day away from matching its all-time high set in 2007. Reasons for the rally abound: Washington averted a “fiscal cliff,” the country is reporting moderate economic growth, and unemployment is gradually coming down. However, Europe’s economic problems, though quiet for now, could easily flare up again. And the next budget showdown between Congress and the Obama administration is just around the corner.

Does the market's bull run have more room to go?

Yes. Defaults are falling and businesses are beginning to place more orders, suggesting a real recovery is underway.

No. We've seen this before: The market starts out the year rallying, only to sink as optimism wears off and reality sets in.